The upshot: declining growth rates and declining ad sales per registered users. An interesting and intelligent take on Facebook growth and earnings (via Minionville).
As you can see, the numbers, particularly in advertising (which accounts for 82% of total revenues), are falling quickly.
Let’s hope that acceleration in payments revenue can start to pick up the slack.
And if we look at total company revenues, we can see that year-over-year growth is rapidly decelerating — it went from 55% in Q4 to 45% in Q1 2012:
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I like it.
Bhanu garu,
I agree with your assessment, but only partly. Facebook is giving the means to socialize in an otherwise increasingly busy and fast paced world. It is not just photo sharing but you can share videos, play games and collaborate in an entirely different way in spite of physical distance and lack of physical proximity. But I think the real thing that is going to be different with this rather than with a ‘normal search’ patterns on a typical google search is that, here the chance of something to get ‘promoted’ vastly increases if your friends suggest to you and something that gets discussed in your social circle! I think this has potential to be mined. But again a lot depends on how best their algorithms work. Web Search was there years before Google, but what trumped everyone else is that they had ineffective algorithms beyond a point.
Having said this facebook notoriously lacking in protecting privacy and exclusivity of communication which google+ tried to address but it is still far less popular and yet to catch up. 🙂
Cheers
Ramana
Thanks for the post Mohan garu. Facebook is fast becoming a photo sharing site. That’s all it is. The rest i.e likes,calender,wall …. will loose steam soon. Folks will not care about most of the postings on wall except its a birthday or some announcement or some special day. The photos are something we love to share with family and friends. The photos will be the main reason for many to check the page. Forcing users to click on the “Like” is a tough act. The first world users are aware of the “Like” and will not click it often. The second ( or third) world folks will use the “Like” but no money there. Unlike Google, they do not have an original search repository data. All the data they have is given by the users. Monetizing will be a tricky thing. Facebook will have tough time after the IPO.